060 - Commercial Multi-Let Deal

'Know your exit options'

In this BRAND NEW Podcast Series we will be going Behind the Scenes on some of the UK's most Creative, Lucrative and Award-Winning Deals 🤩

Hosted by me, Mark S Barrett from The Property Brokerage, this month it gives me the absolute pleasure to welcome Billy Turriff who will share his insights on Commercial Multi-Let deals.

In this podcast, Billy and I discuss his take on a commercial multi-let deal that he did which highlights why it is important to have multiple exit options.

His initial option was to convert it into self-contained studios and even though he had gained prior approval, the build costs due to Covid were too high so Billy used his experience to let out the spaces to individual businesses wanting a flexible office space.

The rents were similar to what a HMO would provide without the high refurb costs and as this was a commercial property there was no stamp duty to pay.

This led to a very high Return on Capital Employed (ROCE), after refinancing, of 50%.

Purchase price £110,000

Refurb and costs: £20,000

New valuation: £150,000

Exit: retained as an asset for own portfolio

Cash left in after potential refinance: £18,000

Equity: £20,000 approx

Cashflow: £9000 pa +

ROCE: 50%

If you want to understand how to make commercial multi-let deals work for you this is one Podcast you do not want to miss.

Our February episode of Deals Deals Deals is now live, tune in straight away to avoid missing the boat.

Success and Failure are both very predictable.

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